Europe has decided: it will support Kiev for 2026 and 2027 with a 90 billion loan, through common debt and not with the use of Russian assets (which remain blocked). The decision came at the end of a long meeting of the European Council, one of the most difficult in recent months. Not only that. It was also decided to postpone the signing of the trade agreement with Latin America (Mercosur). Both decisions were supported by the Italian Prime Minister Giorgia Meloni, who effectively achieved a double success. Let’s understand together what the EU has decided.
We gathered today with a clear objective:
to address Ukraine’s pressing financing needs.
We delivered.
90 billion euros for the next two years through EU borrowing on the capital markets ↓
https://t.co/DPQcTkDPX8— Ursula von der Leyen (@vonderleyen) December 19, 2025
The loan to Ukraine (Russian assets are not touched)
Europe has decided to guarantee Ukraine’s financial support for 2026 and 2027 with a 90 billion euro European debt, guaranteed by the fiscal margin. A decision approved unanimously with the exemption of Hungary, the Czech Republic and Slovakia which however will not be required to contribute to any guarantees. The 210 billion euros of Russian assets “immobilized” in the EU can only be used if Russia does not pay reparations but for now they are not affected.
“We have reached an agreement – explained the President of the European Commission Ursula von der Leyen – to meet Ukraine’s financial needs for the next two years. As you know, the Commission had proposed two solutions. Both legally valid. Both technically feasible. On the one hand, we proposed the EU indebtedness on the market. On the other, we developed the loan for reparations. Already last week, we sent a clear and strong political message by immobilizing Russian assets in the EU in the long term”.
As for the technical aspects, Von der Leyen explained that member states “have agreed to finance Ukraine through EU borrowing on the capital markets, in the amount of 90 billion euros for the next two years. We will do this through enhanced cooperation, supported by the EU’s fiscal space. And
based on a unanimous agreement to amend the MFF (multiannual financial framework). Similar to the very important repair loan, Ukraine should repay the loan only once it receives the repairs. Until then, the assets will remain immobilized.”
Double victory for Meloni
The Belgian Prime Minister, Bart De Wever, rejoices: “Ukraine has won and Europe has won. We have guaranteed financial stability.” And he recognizes that “the situation began to change when Italy also expressed itself”.
Politically it is in fact a success for Meloni, who speaks of “common sense prevailing” and says she is “satisfied”. The president of the European Commission, Ursula von der Leyen, and the German chancellor, Friedrich Merz, are downplayed, but come out heavily defeated.
“I am satisfied with the results of this European Council in which I brought the positions to which I was clearly also bound by the parliamentary resolution, by the position that I brought yesterday to Parliament, particularly on two issues that were most important for us”, says Meloni at the end of the summit. “The first was to guarantee the necessary support to Ukraine for the next two years, but to do it with a legally and financially sustainable solution and I am happy that common sense prevailed, that we managed to guarantee the resources that are necessary but to do it with a solution that has a solid legal and financial basis”, she explains.
The other front concerns Mercosur. “We are working to postpone the Mercosur summit, which gives us more weeks to try to give the answers that are requested by our farmers, the safeguards that are necessary for our products and thus allow us to be able to approve the Mercosur agreement when, as we have said, we will have all the guarantees that are required by a sector that otherwise could be affected”, highlights the prime minister.
Costa: “We keep the commitments made with Kiev”
Last October, “we decided that the European Union would cover Ukraine’s urgent financial needs for 2026 and 2027. Last week, we decided that Russia would not recover its assets until Moscow ended its aggression. Today we approved the decision to provide 90 billion euros to Ukraine for the next two years,” explains the President of the European Council Antonio Costa.
“Urgently – he continues – we will provide a loan guaranteed by the EU budget. This will respond to Ukraine’s urgent financial needs. And Ukraine will repay this loan only after Russia has paid the reparations. The Union reserves the right to use fixed assets to repay this loan. At the same time, we have given a mandate to the Commission to continue working on the reparations loan based on Russian fixed assets”. Furthermore, “we agreed to renew our sanctions against Russia. Our goal is not to prolong the war. Indeed, today’s decisions represent a crucial contribution to achieving a just and lasting peace for Ukraine.
Because the only way to bring Russia to the negotiating table is to strengthen Ukraine. Today’s decisions will provide Ukraine with the necessary means to defend itself and support the Ukrainian people.”
